Although the money supply (M2) was increasing considerably because of the implementation of three quantitative easings from 2009 to 2014, the inflation has not gone up yet due to the declining of velocity of money supply (M2). The relationship between the velocity of money and inflation were positively correlated until 1990, but the relationship did not hold after 1990 due to globalization. The velocity of money increased from 1990 to 2006, but the inflation rates were stable because of low prices of imports from china.

After the financial crisis in 2007, the monetary base increased by $3.5 trillions of dollars and the U.S. economy grew positively again. However, the inflation rate continues to stay low because the velocity of money falls from 1.7 to 1.58 which is the historical lowest point.